Apple Pay competitor Samsung Pay launching in the US on Sept. 28

Posted:
in General Discussion edited September 2015
At its Unpacked press event on Thursday, Samsung announced that Samsung Pay -- its answer to mobile payment systems like Apple Pay -- will launch in the U.S. on Sept. 28.




Initially, Samsung Pay will be available only to owners of the new Galaxy S6 Edge+ and Note 5. A forthcoming software update will enable it on the S6 and S6 Edge, and Samsung will begin trailing the service for some U.S. users on August 25.

Unlike Apple Pay and Android Pay, Samsung Pay supports not just NFC for retail transactions but also a separate wireless technology -- acquired via the takeover of LoopPay -- that can mimic a card swipe. That should give Samsung Pay a leg up when it comes to merchant acceptance, as merchants will not be forced to upgrade their payment terminals to work with NFC in order to accept Samsung Pay.

To use Samsung Pay, users choose the card they want to use, authenticate with a fingerprint scan, then tap their device on the appropriate spot on a terminal. Samsung is relying on tokenized transactions to prevent stolen data and fraud.

Early U.S. partners lined up for the service include credit card companies American Express, Discover, MasterCard, and Visa, as well as banks like Chase, Bank of America, and U.S. Bank.

Apple Pay has been available in the U.S. since October 2014, and counts more than 425 participating financial institutions. Merchant support has expanded much more slowly however, in large part because stores have been slow to replace older payment terminals.
«13456

Comments

  • Reply 1 of 101
    Really, can't this company come up with their own stuff? I do like how they approach this different as with the accession of LoopPay, but Apple Pay was first, then Google Pay, and now Samsung Pay? Well, we will soon see all merchants accepting these as their previous contracts update next month (?)
  • Reply 2 of 101
    jakebjakeb Posts: 557member

    It's not even worth complaining about how little shame they have about blatant copying. 

  • Reply 3 of 101
    I suppose we will be able to read more about this after the BlackHat Europe conference.
  • Reply 4 of 101
    sirlance99sirlance99 Posts: 1,143member
    jakeb wrote: »
    It's not even worth complaining about how little shame they have about blatant copying. 

    What exactly is the copying that has taken place?
  • Reply 5 of 101
    So original. Such an innovative company.
  • Reply 6 of 101
    Does it properly mimic a swipe after chip and pin takes effect?
  • Reply 7 of 101
    gatorguygatorguy Posts: 20,585member
    I had forgotten about LoopPay, and wouldn't have noted any advantage to it anyway until AI mentioned it. Sounds like something Apple might figure a way of designing in themselves as on the surface (Not MS :D )it does sound advantageous.
  • Reply 8 of 101
    calicali Posts: 3,495member
    sirlance99 wrote: »
    What exactly is the copying that has taken place?

    I'm having a riduculus hard time figuring this out too. But then again i'm not too brite.
  • Reply 9 of 101
    mike1mike1 Posts: 1,884member

    How does LoopPay work if there's no NFC needed in ther terminal?

    Maybe I'm wrong, but didn't Apple patent a whole bunch of IP regarding the tokenized transactions?

  • Reply 10 of 101
    jungmarkjungmark Posts: 6,687member
    Waiting for the "Sammy Pay is the Apple Pay killer" articles.
  • Reply 11 of 101
    No way in hell I'd entrust Samsung with any personal or banking information.
  • Reply 12 of 101
    Quote:

    Originally Posted by Jerry602 View Post



    Does it properly mimic a swipe after chip and pin takes effect?

     

    No. If you add a chip/PIN card to Samsung Pay, and try to use MST (the mag stripe system), the terminal will decline and tell you to insert your card.

     

    However, if your chip/PIN card is from a bank that's been updated (like banks have to update their system for Apple Pay), then you can use MST to make the payment and it will work.

     

    The real problem I see is how does Samsung explain this to people? Why can some people add cards and they work and others add cards and they don't? Apple decided to simply ONLY allow cards from banks that have updated to the newest EMVco standard and not bother to support older systems. Samsung, by trying to be compatible with everything, is going to piss off users when they see the fragmentation between cards and issuers.

  • Reply 13 of 101
    NFC and LoopPay. Both wireless charging standards. S6 and S6 Edge. The Samsung reputation of "two of everything" remains intact.
  • Reply 14 of 101
    gatorguygatorguy Posts: 20,585member
    mike1 wrote: »
    How does LoopPay work if there's no NFC needed in ther terminal?
    Maybe I'm wrong, but didn't Apple patent a whole bunch of IP regarding the tokenized transactions?
    Probably wrong except perhaps for some very specific implementation. Tokenization standards were set by PCI (Payment Card Industry group). Apple is playing by the rules they established, adding their own special flourishes of course. But because all these mobile payment solutions will have to adhere to PCI requirements they are all going to work in similar ways and look quite similar as well. I'm not 100% certain but I think even color schemes have been addressed by PCI.
  • Reply 15 of 101
    thomprthompr Posts: 1,511member
    Quote:

    Originally Posted by Gatorguy View Post



    I had forgotten about LoopPay, and wouldn't have noted any advantage to it anyway until AI mentioned it. Sounds like something Apple might figure a way of designing in themselves as on the surface (Not MS image )it does sound advantageous.



    There will be no advantage to LoopPay.  By the time it really gets going on Samsung phones, all of the merchants will have upgraded their terminals (as mandated by the CC companies) anyway, and these will all accept ApplePay, AndroidPay, or Samsung Pay (via NFC) as well.  Plus it is cumbersome to use and brought with all of the same security issues that traditional CCs come with.

  • Reply 16 of 101
    jungmark wrote: »
    Waiting for the "Sammy Pay is the Apple Pay killer" articles.

    But but but Samsung Apple needs competition!
  • Reply 17 of 101
    Quote:

    Originally Posted by jakeb View Post

     

    It's not even worth complaining about how little shame they have about blatant copying. 




    I'm a long time Apple products user. All my devices are Apple. First computer was a IICi ... How exactly is this copying? You are claiming a NFC based electronic payment system using tokens is something Apple invented? You are nuts. The more the merrier. If it is not tied to the Samsung/Android platform I will consider using it along with Apple Pay if the features, acceptability and security are on a par with Apple Pay. I do what is best for me. I don't cut my nose off to spite my face or turn away from what may be a good product just because of who's name may be on the outside.

  • Reply 18 of 101
    gatorguygatorguy Posts: 20,585member
    thompr wrote: »

    There will be no advantage to LoopPay.  By the time it really gets going on Samsung phones, all of the merchants will have upgraded their terminals (as mandated by the CC companies) anyway, and these will all accept ApplePay, AndroidPay, or Samsung Pay (via NFC) as well.  Plus it is cumbersome to use and brought with all of the same security issues that traditional CCs come with.
    They won't all be updated as there's no legal requirement to do so AFAIK. Mom and Pop's Corner Store will probably keep using their old swipe machine just as they have for years.
  • Reply 19 of 101
    Quote:

    Originally Posted by Gatorguy View Post





    They won't all be updated as there's no legal requirement to do so AFAIK. Mom and Pop's Corner Store will probably keep using their old swipe machine just as they have for years.



    Too bad for Samsung, banks/issuers won't all be updating their back end systems to allow chip/PIN cards to work using MST. So Samsung/LoopPays promise of working with all terminals won't ever be fully realized.

  • Reply 20 of 101
    If you attack Samsung hard enough in the forums, someone will post a defensive non sequitur, like "but but but Samsung parts are inside your iPhone!"

    Let's see if we can get them to come out and play ;)
Sign In or Register to comment.